Home Buying 7-Step Plan, Step 6

Home Buying 7-Step Plan, Step 6

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home closing

Closing Your Home

The big day has arrived: your new home will officially be yours once closing has been completed. If you time everything right, you can begin moving in once the papers have been signed and the house keys placed in your hands.

Before you visit with your closing attorney, you’ll want to make sure that the home that you are buying is turned over to you according to the terms of the contract. A final walk through with your inspection report in hand will reveal whether all of the terms have been fulfilled. Usually, these matters are cleared up days or weeks in advance, but there is always the chance that something was missed. A walk through lets you identify unfinished business and gives the current owner time to resolve any problems.

What To Check

Depending on the time you have available for the inspection, you’ll want to make sure that the following items are checked:

  • Run the appliances to see if they are in working order.
  • Check floors, walls, and ceilings for cracks or other damage.
  • Look around the foundation and grounds for drainage problems.
  • Make sure that all unused paints, nonworking appliances, or other debris is removed from the premises — you might be surprised what you’ll find left behind in an attic crawlspace, cellar, or other unforgotten corner of the house!
  • Inspect the roof, under the eaves, and the home’s siding.

If a serious structural problem arises, then you may have to call off the deal — you’ll need to check your sales agreement to find out what recourse you have in this worst case scenario.

Home Closing Costs

Closing costs are usually associated at the time of taking possession of your home. These include:

  • Attorney’s or escrow fees (yours and your lender’s if applicable)
  • Property taxes (to cover tax period to date)
  • Interest (paid from date of closing to 30 days before first monthly payment)
  • Loan origination fee (covers lender’s administrative costs)
  • Recording fees
  • Survey fee
  • First premium of mortgage insurance (if applicable)
  • Title insurance (yours and your lender’s)
  • Loan discount points
  • First payment to escrow account for future real estate taxes and insurance
  • Paid receipt for homeowner’s insurance policy (and fire and flood insurance if applicable)
  • Any documentation preparation fees

Your attorney will go over the other steps related to your closing and if he or she has everything in order, your closing should be completed within one hour’s time. In some states you don’t even have to be present at the closing, giving your lawyer power-of-attorney to handle everything for you.

See Also

Closing Cost Review

Hud-1 Settlement 

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Categories: Home Buying

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